PERTH (miningweekly.com) – Junior Northern Cobalt has struck an agreement to acquire an 80% interest in the Goodpaster gold project, in Alaska, adjacent to the ten-million-ounce Pogo project owned by Northern Star.
Under the terms of the agreement with TSX-V-listed Millrock Resources, Northern Cobalt would pay an initial $250 000 to secure a 50-day exclusivity period.
A further $250 000 will become payable to extend the option period for a further 50 days.
On the completion of a due diligence, Northern Cobalt could earn an initial 60% interest in the Goodpaster project by spending $20-million on exploration over a four-year period. The Australian company could earn an additional 10% interest by fully funding a bankable feasibility study, and could take its stake in the project to 80%, by electing to loan carry Millrock to first production.
Northern Cobalt MD Duncan Chessell told shareholders on Thursday that the potential camp scale of the gold system in evidence across the property and the results declared from Northern Star, put the Goodpaster brownfield project head and shoulders above other opportunities assessed by the company.
“The all-year mine-road access available at this project is a huge logistical and cost saving advantage over typical summer-only helicopter supported projects in Alaska. Our team partners Millrock with their local experience, staff and geology team, plus our Australian exploration team, make a strong combination for improving the odds of discovery success,” Chessell said.